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Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2025

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the assets and liabilities measured at fair value on a recurring basis at March 31, 2025 and December 31, 2024, classified using the fair value hierarchy:


	At March 31, 2025
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:



Residential mortgage-backed securities	$	—	$	290,166	$	—	$	290,166
Collateralized mortgage obligations	—		1,630		—		1,630
Corporate bonds	—		72,707		—		72,707
Total available-for-sale securities	—		364,503		—		364,503
Equity securities:

Money market mutual funds	1,667		—		—		1,667
Total equity securities	1,667		—		—		1,667

Loans held for sale	—		13,150		—		13,150

Interest rate locks with customers*	—		422		—		422

Total assets	$	1,667	$	378,075	$	—	$	379,742
Liabilities:


Credit derivatives*	$	—	$	—	$	79	$	79

Forward loan sale commitments*	—		141		—		141
Total liabilities	$	—	$	141	$	79	$	220

* Such financial instruments are recorded at fair value as further described in Note 11, "Derivative Instruments and Hedging Activities."


	At December 31, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:


State and political subdivisions	$	—	$	1,295	$	—	$	1,295
Residential mortgage-backed securities	—		283,381		—		283,381
Collateralized mortgage obligations	—		1,685		—		1,685
Corporate bonds	—		71,000		—		71,000
Total available-for-sale securities	—		357,361		—		357,361
Equity securities:

Money market mutual funds	2,506		—		—		2,506
Total equity securities	2,506		—		—		2,506

Loans held for sale	—		16,653		—		16,653
Interest rate locks with customers*	—		214		—		214
Forward loan sale commitments*	—		12		—		12
Total assets	$	2,506	$	374,240	$	—	$	376,746
Liabilities:
Contingent consideration liability	$	—	$	—	$	635	$	635

Credit derivatives*	—		—		67		67

Total liabilities	$	—	$	—	$	702	$	702

* Such financial instruments are recorded at fair value as further described in Note 11, "Derivative Instruments and Hedging Activities."

Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Level 3 Rollforward

The following table includes a rollforward of credit derivatives for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31, 2025
(Dollars in thousands)	Balance at December 31, 2024		Additions		Increase in value		Balance at March 31, 2025


Credit derivatives	$	(67)	$	(30)	$	18	$	(79)
Net total	$	(67)	$	(30)	$	18	$	(79)


	Three Months Ended March 31, 2024
(Dollars in thousands)	Balance at December 31, 2023		Additions		Increase in value		Balance at March 31, 2024


Credit derivatives	$	(186)	$	(161)	$	227	$	(120)
Net total	$	(186)	$	(161)	$	227	$	(120)

Contingent Consideration Liability Change In Amount

The following table presents the change in the balance of the contingent consideration liability related to acquisitions for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31, 2025
(Dollars in thousands)	Balance at December 31, 2024		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2025
Paul I. Sheaffer Insurance Agency	$	635	$	635	$	—	$	—
Total contingent consideration liability	$	635	$	635	$	—	$	—


	Three Months Ended March 31, 2024
(Dollars in thousands)	Balance at December 31, 2023		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2024
Paul I. Sheaffer Insurance Agency	$	1,224	$	635	$	12	$	601
Total contingent consideration liability	$	1,224	$	635	$	12	$	601

Assets Measured at Fair Value on Non-Recurring Basis

The following table represents assets measured at fair value on a non-recurring basis at March 31, 2025 and December 31, 2024:


	At March 31, 2025
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets at Fair Value
Individually analyzed loans held for investment	$	—	$	—	$	8,030	$	8,030

Other real estate owned	—		—		22,433		22,433
Repossessed assets	—		—		79		79
Total	$	—	$	—	$	30,542	$	30,542


	At December 31, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets at Fair Value
Individually analyzed loans held for investment	$	—	$	—	$	10,111	$	10,111

Other real estate owned	—		—		20,141		20,141
Repossessed assets	—		—		76		76
Total	$	—	$	—	$	30,328	$	30,328

Assets, Liabilities and Off-Balance Sheet Items Not Measured at Fair Value

The following table presents assets and liabilities not measured at fair value on a recurring or non-recurring basis in the Corporation’s condensed consolidated balance sheets but for which the fair value is required to be disclosed at March 31, 2025 and December 31, 2024. The disclosed fair values are classified using the fair value hierarchy.


	At March 31, 2025
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value		Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	169,134	$	—	$	—	$	169,134	$	169,134

Held-to-maturity securities	—		114,427		—		114,427		130,889
Federal Home Loan Bank, Federal Reserve Bank and other stock	NA		NA		NA		NA		35,732
Net loans and leases held for investment	—		—		6,643,105		6,643,105		6,737,217
Servicing rights	—		—		11,402		11,402		6,872
Total assets	$	169,134	$	114,427	$	6,654,507	$	6,938,068	$	7,079,844
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	5,112,205	$	—	$	—	$	5,112,205	$	5,112,205
Time deposits	—		1,547,618		—		1,547,618		1,546,293
Total deposits	5,112,205		1,547,618		—		6,659,823		6,658,498
Short-term borrowings	4,031		—		—		4,031		4,031
Long-term debt	—		175,649		—		175,649		175,000
Subordinated notes	—		146,750		—		146,750		149,386
Total liabilities	$	5,116,236	$	1,870,017	$	—	$	6,986,253	$	6,986,915


	At December 31, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value		Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	328,844	$	—	$	—	$	328,844	$	328,844
Held-to-maturity securities	—		115,007		—		115,007		134,111
Federal Home Loan Bank, Federal Reserve Bank and other stock	NA		NA		NA		NA		38,980
Net loans and leases held for investment	—		—		6,586,054		6,586,054		6,729,381
Servicing rights	—		—		12,710		12,710		6,990
Total assets	$	328,844	$	115,007	$	6,598,764	$	7,042,615	$	7,238,306
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	5,305,553	$	—	$	—	$	5,305,553	$	5,305,553
Time deposits	—		1,458,774		—		1,458,774		1,453,706
Total deposits	5,305,553		1,458,774		—		6,764,327		6,759,259
Short-term borrowings	11,181		—		—		11,181		11,181
Long-term debt	—		225,475		—		225,475		225,000
Subordinated notes	—		147,500		—		147,500		149,261
Total liabilities	$	5,316,734	$	1,831,749	$	—	$	7,148,483	$	7,144,701

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details